Finance Ministry Approves Container Terminal Contract For Takoradi

The Ministry of Finance has endorsed a concession agreement between the Ghana Ports and Harbours Authority (GPHA) and IBISTEK, a wholly-owned Ghanaian company, to develop and operate an on-dock container multi-purpose terminal at the Takoradi Port in the Western Region.

This follows an approval given by the Public Procurement Authority (PPA) which declared that the procurement processes followed by GPHA to grant concession to Messrs IBISTEK were in accordance with the Public Procurement Law (Act 663, 2003) as amended.

In a letter sighted by BUISNESS GUIDE dated May 11, 2018 and signed by the Minister of Finance, Ken Ofori-Atta, the Finance Ministry revealed that it had endorsed a letter written by the Public Procurement Authority dated February 5, 2018 which declared the validity of the concession agreement.

The letter referenced a December 27, 2017 one which directed the Director-General of GPHA to suspend the concession agreement between GPHA and IBISTEK without cost to GPHA and the government of Ghana.

“As you may recall in my letter, I directed your good self to suspend the concession agreement to undertake the above-mentioned project without cost to the Ghana Ports and Harbours Authority (GPHA) and government and report same to this Ministry,” the Finance Minister said.

“Subsequent to the referenced letter, this Ministry sought the views of the Public Procurement Authority (PPA) and the Ministry of Transport (MoT) regarding the propriety of the procurement processes employed by the GPHA in concessioning the integrated terminal to IBISTEK Limited,” it stated.

Mr Ofori-Atta informed both GPHA and IBISTEK that per the letter from the PPA dated February 5, 2018, the Authority declared that the procurement processes fully complied with the Public Procurement Law (Act 663, 2003) as amended.

The Finance Minister said his outfit has accepted the recommendation of the PPA and would share a value for money analysis, once completed, with the parties involved.

“You can, therefore, proceed to undertake the necessary actions to give effect to the concession agreement between GPHA and IBISTEK Limited for the development of the on-dock container and multi-purpose terminal project,” the Finance Minister said.

Loan
The on-dock multipurpose terminal, which would be developed by IBISTEK Ghana Limited, would also have a container quay of 16-metre draft capable of accommodating bigger vessels and further make the Takoradi Port to become a long-term competitive alternative, and seeks to source its funds from the African Development Bank (AfDB).

Subsequent to the approval of the concession agreement by the PPA, the Finance Ministry wrote another letter dated May 11, 2018 to the African Development Bank to reiterate its full support to the request for funding submitted to the bank by IBISTEK Limited.

“The Ministry, on behalf of the Government of Ghana, is pleased to inform AfDB that the development of the on-dock container multi-purpose terminal is an integral part of the implementation of the master plan of the Takoradi Port expansion project.

The proposed project is expected to make positive impact nationally and locally for the Sekondi-Takoradi Municipality,” the letter added.

Concession
In August 2017, the GPHA signed a 25-year concession agreement with IBISTEK Ghana Limited for the development of a 61-hectare on-dock container multi-purpose terminal to handle one million 20-footer equivalent units (TEUs) of containers at the Takoradi Port and three million tonnes of general cargo per annum.

Under the agreement, the facility, which would serve as a convergence point to receive imports and transshipment cargo, was also to serve as a one-stop-shop for all container procedures at the Takoradi Port.

IBISTEK, as the concessionaire, is responsible for the full funding of the project – from the construction of basic infrastructure to utility systems, procurement, and installation of cargo handling cranes and equipment, as well as the operation of the terminal.

IBISTEK and GPHA are also developing an oil and gas product berth/jetty with a draft of -14 meters capable of handling a vessel of 50,000 dead weight tonnage (dwt).

These processes were completed after a series of communications between the GPHA and PPA and a subsequent publication of public notices in the September 11, 2017 edition of the Ghanaian Times in compliance with the directive of PPA to the GPHA on the procurement processes.